Understanding IRS Audits for 401(k) Plans The Internal Revenue Service (IRS) has the authority to audit retirement plans, including 401(k) plans, to ensure compliance with tax laws and regulations. An audit involves a review of plan records and financial statements to verify the accuracy of reported information and adherence to plan provisions. Statute of Limitations … Read more
Understanding IRS Special Agents The Internal Revenue Service (IRS) employs Special Agents as part of its Criminal Investigation (CI) division. These agents are tasked with investigating suspected criminal violations of tax laws. Circumstances for a Home Visit IRS Special Agents may visit a taxpayer’s home in specific situations, including: Overdue tax bills Unfiled tax returns … Read more
Depositing money into a savings account is a common practice for individuals to manage their finances. However, it is important to be aware of the potential tax implications associated with these deposits. This guide will delve into the topic of whether or not you have to pay taxes on money you deposit into a savings … Read more
Tax season is a time of year when many people eagerly anticipate receiving their tax refunds. However, for some, the wait for a refund can be longer than expected. This article will explore the reasons why some people are still waiting for their tax returns and provide guidance on how to track the status of … Read more
Cashing checks is a common practice for many individuals, but it is important to be aware of the potential implications for tax purposes. This article will explore whether the IRS can see checks you cash and discuss the consequences of failing to report your income. IRS Monitoring of Check Cashing Generally, the IRS does not … Read more
The Internal Revenue Service (IRS) has the authority to impose a levy on an individual’s property or income to collect unpaid taxes. However, there are certain circumstances under which a levy can be reversed or released. Grounds for Levy Reversal According to the IRS, a levy may be released if the taxpayer: Pays the amount … Read more
In the United States, the Internal Revenue Service (IRS) collects taxes on most forms of income. However, there are certain types of income that are exempt from federal income tax. This means that you can earn this income without having to pay taxes on it. Here are 11 ways to make tax-free money legally: Gifts … Read more
The Internal Revenue Service (IRS) plays a crucial role in enforcing the nation’s tax laws. One of its primary tools for ensuring compliance is conducting audits, which involve examining tax returns to verify their accuracy and completeness. This article delves into the IRS’s audit practices, providing insights into the number of audits conducted, the factors … Read more
Self-employment tax is a crucial aspect of financial planning for individuals who work for themselves. Understanding the self-employment tax rate and its implications is essential for accurate tax filing and financial management. This article delves into the intricacies of the self-employment tax rate, providing a comprehensive overview for self-employed individuals. What is Self-Employment Tax? Self-employment … Read more
The standard deduction is a specific amount that you can deduct from your taxable income before calculating your taxes. The amount of the standard deduction varies depending on your filing status and is adjusted annually for inflation. Itemizing deductions means that you can deduct certain expenses from your taxable income, such as mortgage interest, state … Read more